Identifying Lean Waste

© Operational Excellence Consulting. All rights reserved.
IDENTIFYING
WASTE
Discover, Eliminate, Prevent

© Operational Excellence Consulting. All rights reserved. 2
Learning Objectives
1. Discover waste in your work environment
2. Learn how to remove waste
3. Learn how to prevent waste
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NOTE: This is a PARTIAL PREVIEW.
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Contents
1. What is Waste?
2. Waste Classification: Four Models of Waste
3. How to Discover Waste
4. How to Remove Waste
5. How to Prevent Waste

Introduction to Identifying Waste
§ The most difficult part of an improvement process or
problem solving effort is often the first step
§ For improvement to occur, individuals involved in the
improvement process have to discover the underlying
waste and begin to see the improvement potential
§ This training presentation will teach you the four models
of waste which you can use to identify waste in your
processes and work areas

“Waste is anything other
than the minimum
amount of equipment,
materials, parts, space,
and worker’s time which
are absolutely essential to
add value to the product.”
Shoichiro Toyoda
President, Toyota
Definition of Waste

Waste Takes Root When We Accept Stopgap
Improvement
A Problem
Occurs
Evading the problem
“For the time being, let’s…”
Institutionalization
“Let’s find ways
to work around it.”
Habituation
“We’ve always done it
like this.”
Substantiation
“No one has any objection
to the way we do this now.”
Stopgap
Improvement
Ask “why” until root cause is
understood
Real
Improvement
Apply best solution
Problem is solved

Four Models of Waste
1. The three MUs
2. The 5M + Q + S
3. The flow of goods
4. The eight types of waste (manufacturing and
service/office)

Activities that do
not add value
Workload that
is uneven
Work that creates burden for the
team members or processes
What are the Three MUs?

Explanation of the Three MUs
The
Three
MUs
Meaning in
English
Explanation
(using example of Capacity versus Load)
Muda • Waste
• Capacity exceeds
Load
Mura
• Unevenness
• Inconsistency
• Variation
• Capacity sometimes
exceeds the Load
• Load sometimes
exceeds the Capacity
Muri
• Overburden
• Irrationality
• Load exceeds
Capacity

Eight Types of Muda (Waste)
Over-production
Producing more than what
the customer needs
Inventory
Building and storing extra
services/products the
customer has not ordered
Transportation
Moving product from
one place to another
Defects
Reprocessing, or
correcting work
Over-processing
Adding excess value
when the customer
does not require it
Motion
Extra physical/mental
motion that doesn’t add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Employees waiting for
another process or a
machine/tool
Waste

What is Mura (Unevenness)
§ Mura is the variation in the operation of a process not
caused by the end customer
§ It is the unevenness, unbalanced work on machines
§ Mura results when employees are told to work like crazy
early in the morning only to stand around and do nothing
late in the day
§ Result: Excess capacity allocation and increased cost

Mura Looks Like
Bumpy
Lumpy
Spiky
Unequal
Peak & Valley Up & Down
Unlevel Stop & Start
Unevenness

What is Muri (Overburden)
§ Muri is the overburden on equipment, facilities and
people caused by muda and mura
§ Muri is pushing a machine or person beyond natural
limits
§ Overburdening people results in safety and quality
problems
§ Overburdening equipment causes breakdowns and
defects

Muri Looks Like
Overburden
Pain
Unrealistic
Tasks
Overloading
Poor
Ergonomics
Poor Design
Unnatural
Movements

The 5M + Q + S
§ Another way of thinking about waste in a factory is to
focus on the areas where waste may occur
§ Man
§ Material
§ Machine
§ Method
§ Management
§ Quality
§ Safety

The 5M + Q + S
Man
The waste of:
• Walking
• Waiting
• Searching
• Unnecessary movement
• Not easily recognizable waste
Machine
The waste of:
• Large machines
• General purpose machines
• Conveyors
• Machines with wasteful
movements
• Breakdowns
• Machine handling
Material
The waste of:
• Parts
• Bolts
• Welds
• Functions
• Storage and handling
Management
The waste of:
• Materials
• Meetings
• Management Control
• communications
Safety
The waste of:
• Disaster prevention methods
• Fixing defects
(“Safety first” really requires
removing all waste that can lead
to accidents and/or injuries
Quality
The waste of:
• Making defective goods
• Fixing defects
• Errors
• Inspection
• Quality control
Method
The waste of:
• Large lot production
• Inventory
• transportation
• Retention
• Non-standardization
• Picking up and setting down
work pieces

The Flow of Goods
§ The third way of thinking
about waste in a factory is
to focus on the flow of
goods in production

The Flow of Goods
1. Materials are procured
• Materials are retained in the
warehouse
• Materials are conveyed to
processes on the production line
• Materials are retained at the
process equipment (WIP)
• Materials are picked up for
processing
2. Materials are processed
• Processed goods are set down
and retained on the other side of
the processing machine (WIP)
• Goods are conveyed to an
inspection point
• Goods are retained until inspected
• Goods are set down and retained
on the other side of of the
inspection process
• Inspected goods are conveyed to
the finished goods warehouse
• Finished goods are retained until
prior to shipment
3. Finished goods are
delivered to customer
Four key activities can be observed
from the flow of goods:
1. Retention (Non-value-add)
2. Transportation (Non-value-add)
3. Processing (Value-add)
4. Inspection (Non-value-add)

The Eight Types of Waste in a Production System
Transportation Processing waste
Inventory Defects
Overproduction
(production methods)
Motion waste
(operation methods)
Waiting time
(imbalances)
Intellectual waste
Retention
Inspection
Processing
Retention
Transportation

Waste Finding – 4 Levels of Magnitude
Magnitude
of
Waste
0 ------------------ No waste found
1 ------------------ Very little waste
2 ------------------ Some waste
3 ------------------ A lot of waste

Overproduction
§ It is the worst of the eight waste
§ It is the exact opposite of just-in-
time production
§ Overproduction means making
what is unnecessary, when it is
unnecessary, and in unnecessary
amounts
§ Occurs when you manufacture
items when there are no orders

Causes of Overproduction
§ Large-lot production
§ Anticipatory production (producing product in advance of
demand)
§ Long changeover times
§ Building enough stock to replace defective parts
produced
§ Overstaffing, or too much equipment
§ Machines that turn out parts too quickly

Waste-finding Checklist – Overproduction
Waste-finding Checklist – Overproduction
Process: Date:
Description of Waste Yes No Magnitude Causes and/or Improvement Plans
1 No production schedule or control boards.
2 No levelling of production schedule.
3 Production not in sync with production schedule.
4 Items missing.
5 Defective goods produced.
6 Equipment breakdowns.
7 Too much manual assistance required.
8 Machines have too much capacity.
9 Lots are grouped into batches.
10 Using “push” production.
11 Caravan style operations.
12 Not balanced with next process.
Total

Accumulation of Inventory in the Flow of Goods
Assembly
station 1
Centralized
processing
Assembly
station 2
Assembly
station 3
Processing
station 1
Processing
station 2
Processing
station 3
Retention of goods

Unbalanced Production Line Inventory
Upstream process
Downstream process
Inventory

The Difference Between Transportation
(Conveyance) & Material Handling
Transportation
Retention Retention
(Movement between retention points is often
called conveyance or transportation.)
Material handling
Retention Process
(Movement between a retention point and a
process [or between two processes] is often
called material handling.)
Movement of Goods
Retention point
Process
Transportation
Material handling

Kinds of Inspection
Sorting inspection
(Defect-finding
inspection)
Inspection
Information
inspection
(Defect-reducing
inspection)
Back-to-the-source
inspection
(Defect-preventing
inspection)
Quality control
(Using SQC methods to
reduce defects)
Downstream
process control
(Defect-reducing
inspection at
downstream processes)
Quality control by
process operators
(Defect-reducing
methods by operators at
their own processes)
To reduce defects, their root cause must be found.
Inspection that only sorts out the defective parts is
not a solution to defect waste.

Waste-finding Checklist – Motion
Waste-finding Checklist – Motion
Process: Date:
Description of Waste Yes No Magnitude Causes and/or Improvement Plans
1 Walking.
2 Turning around.
3 Leaning sideways.
4 Bending over.
5 Too wide arm movements.
6 Unnecessary wrist movements.
7 Left or right hand is idle.
8 Poorly utilized idle time.
9 Wasteful work piece setup/removal.
10 Non-standardized repetition of operations.
11
Worker operates using different motions each
time.
12 Operations divided into too many little segments.
Total

• Creates an end-to-end view of the production system
• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system
Supplier Management
Control
Customer
Work & Information Flow
Information flow
A Value Stream Map Provides an Overview of the
End-to-end Production Process

The Value-added Flow Chart
§ The value-added flow chart is a mechanism to improve
cycle times and productivity by visually separating value-
adding from non-value-adding activities. The process is
very straightforward, as outlined in this section.

Figure 1
Total Cycle Time
= 116.5 Hours
Steel Coil Stock
Inventory (96 Hr.)
Stamp Steel (0.3
Hr.)
Buffer Inventory (8.0
Hr.)
Inspection & Rework
(0.2 Hr.)
Paint Cabinet (0.5
Hr.)
Test & Rework (0.2
Hr.)
Final Assembly (3.0
Hr.)
Hr.)
Buffer Stock (3.0
Hr.)
Inspection & Rework
(0.1 Hr.)
Cabinet
Construction (0.2
Hr.)
Steel Coil Stock
Inventory (96 Hr.)
Stamp Steel (0.3
Hr.)
Hr.)
Inspection & Rework
(0.2 Hr.)
Paint Cabinet (0.5
Hr.)
Test & Rework (0.2
Hr.)
Final Assembly (3.0
Hr.)
Hr.)
Buffer Stock (3.0
Hr.)
Inspection & Rework
(0.1 Hr.)
Cabinet
Construction (0.2
Hr.)
Total Value-Added
Time = 4.0 Hours
Total Non-Value-Added
Time = 112.5 Hours
Figure 2
Value-Added Non-Value-Added
3%
97%
Cycle Time Analysis
Value-Added
Non-Value-Added
Figure 3

Example of Flow
Process Chart
§ For each of the events,
identify the waste and
make recommendations
for the elimination or
reduction of waste
§ The Flow Analysis Chart
can also be adapted for
operations at each
workstation. In that
case, it should be named
as the Operations
Analysis Chart

Exercise: Prevent Waste
In your respective groups, discuss the following:
1. What kind of standardization exists in your
workplace? How could it be improved?
2. What kinds of visual and auditory control are being
used in your workplace? How could they be
improved?
3. Apply the 5W and 1H sheet to a problem on your line.
What did you find out that you didn’t know before?
15 minutes

About Operational Excellence
Consulting
§ Operational Excellence Consulting is a management
training and consulting firm that assists organizations in
improving business performance and effectiveness.
§ The firm’s mission is to create business value for
organizations through innovative operational excellence
management training and consulting solutions.
§ OEC takes a unique “beyond the tools” approach to enable
clients develop internal capabilities and cultural
transformation to achieve sustainable world-class excellence
and competitive advantage. For more information, please visit
www.oeconsulting.com.sg

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